Revenue wasn’t as strong as some analysts had hoped, with cloud business growth slowing. Microsoft under cloud: Shares of Microsoft fell in premarket trading despite the company beating Wall Street’s average fiscal Q4 sales and earnings estimates.
Though they’re often lumped together as “big tech,” Alphabet is in the communication services sector. Microsoft and Alphabet shares went their separate ways after the two behemoths reported yesterday afternoon.
Many companies were reliant on that to boost their prices last year, and now they’re feeling the reverse effects, notes Kevin Gordon, a senior investment strategist at the Schwab Center for Financial Research. However, just 57% have beaten Wall Street’s average revenue estimate-the lowest since Q2 2019.Īt a macro level, the light revenue results are consistent with the idea that inflation is rolling over. So far this earnings season, 148 companies have reported, and 82% have beaten Wall Street’s earnings per share estimates-the highest percentage since Q2 of 2021 and above the 10-year average of 78%, according to Bloomberg.
Shares of Coca-Cola (KO) also rose after an earnings beat. One highlight included Boeing (BA), which saw shares rise more than 3% in premarket trading after posting a narrower-than-expected quarterly loss and reporting improved free cash flow due to strength in its commercial airliner business. WTI Crude Oil (/CL) eased to $78.89 per barrel.Ī host of earnings hit the tape this morning.Cboe Volatility Index ® (VIX) futures inched up to 14.01.The 10-year Treasury note yield (TNX) dropped 2 basis points to 3.88%.Anyone trading might want to use extra caution. His words often move the market, so perhaps prepare for some volatility when he begins speaking. ET today, followed by a press conference featuring Fed Chairman Jerome Powell. The Federal Open Market Committee (FOMC) concludes its meeting at 2 p.m. Meanwhile, investors digest contrasting earnings reports from mega-caps Alphabet (GOOGL) and Microsoft (MSFT) issued late Tuesday and await Meta Platforms’ (META) results this afternoon. There’s debate about whether this is the final hike or if the economy’s summer sizzle might warrant another. (Wednesday market open) The Federal Reserve wraps up its July meeting today, and the market widely expects a quarter-point rate increase-and wonders what’s next.
Microsoft falls as investors digest outlook, while Alphabet rallies after earnings and Meta up next ET, with market penciling in a quarter-point hikeįed Chair Powell’s press conference after decision could provide clues ahead of September meeting
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